Showing posts with label goldmansachs. Show all posts
Showing posts with label goldmansachs. Show all posts

Sunday, August 22, 2010

From Ronald Reagan to Barack Obama: Tinkerbell, Warrior Kings & A Rotating Cast of Hacks...

The devices employed in U.S. election cycles and its national politics, in general, are akin to the dramatic conventions of children's theatre. Every two to four years, voters are instructed to clap their hands and believe in Tinker Bell. "Children, you have to believe -- you really, really have to believe in Tinker Bell." But behind the stagecraft is oligarchy. President Obama took millions from Goldman Sachs, et al. If there is a Captain Hook in this show, it is those Wall Street pirates who threw the global economy to the crocodiles for their ill-gotten gains.

Of course, this is a tired, old show, riddled with shopworn devices, performed by a rotating cast of hacks.

Ronald Reagan set the fool's gold standard of a president playacting the role of populist, matinee hero -- Clinton, Bush, and Obama all learned from him -- as, all the while, he, in reality, went about the business of protecting and enhancing the holdings of the moneyed elite.

In Reagan's case, this con game was both an act of inspired career advancement and banal casuistry. Reagan, B-grade actor that he was, was never deep enough to harbor any belief he wasn't paid to evince. By professional necessity, he convinced himself he believed those bright and shining lies and polished platitudes he pitched to a public of credulous marks; for this is the mode of mind of effective salesmen and good showmen ... having the ability to conflate shallow self interest with the good of all.

Such self-deception -- played out as public legerdemain and state stagecraft -- is now the modus operandi of media age presidencies. The effect of this transformation, from executive gravitas to virtual playacting, has been somewhat less than salubrious for the health of the republic. When, for example, an American city drowns in floodwater and Americans are drowning in economic woes, U.S. presidents know how to act like a president -- but not act as president. The soundbites make the man; not the man makes the soundbites.

Thus far, Obama's role has been to front the status quo. Whose interest do you think he had in mind when he picked Larry Summers and Tim Geithner as his top economic advisors? Hint: not those who clutch a subway strap nor sit stranded in freeway traffic, in bank-financed motor vehicles, on their daily commute to and from work.

Presidents, as is the case with all people, internalize the social and cultural architecture of their times. Reagan, the actor, had to find a way to believe what movie industry scriptwriters and film directors wanted from him insofar as the creation of character -- and, during the cold war and McCarthy era witchhunts, when G.E. and other defense industry giants started writing his checks (after his movie career died a lackluster death) he performed his role as resolute cold warrior as requested. And he, as has every president since, became a shill and enabler of the national security state.

Barack Obama's transformation from progressive hope-monger to status quo water-carrier should not come as a shock. It would be nearly impossible for the US populace, chief executives included, not to have internalized the tenets of the corporate capitalist/consumer empire. This corporate structure is as pervasive internally as it is extant. It exists as both outer architecture and inner psychological imprinting.

Therefore, corporatism is as real to us as the deep forests and its woodland gods were to European pagans and The Church and its dogma was to the peasants of the Dark and Middle Ages.

The circumstances of the present era, like the ancient belief in the acts of self-involved gods whose doings were heedless to the fate of mere mortals, are larger than us and will not cede to our demands to behave with compassion or even sanity.

This unease contributes to a desperate fantasy of the presidency as deus ex machina. The right's deification of Reagan cast the fantasy into the realm of bughouse raving: The dead president as savor zombie. The belief that Ronald Reagan brought down the Soviet Union with 1940's era movie jibes and bromides is such a preposterous fantasy ... that it evokes one of my own:

Ronald Reagan, endlessly imprisoned in a soundbite loop in Hell, throwing back his shoulders, doing that portrayal of manly resolve he wore out during his time in office ... then bandying into the indifference of eternity, this variation of his patented platitude, "Mr. Devil, tear down this wall of fire."

What is the emotional toil taken by the reality that in life, unlike theatre, there will be no sudden plot reversal brought about by a device of deus ex machina? In these desperate imaginings, we demand our president both lay on hands to heal the wounds inflicted by capitalism and smite our perceived enemies abroad. We insist he be not only a steely eyed warrior-king but our collective killer Christ.

Democratic presidents, and their handlers and advisers, become possessed of this errant archetype as well. Hence, according to the fantasy, to be viable as commander-in-chief, they are driven to prove their toughness, preferably, in some he-man display of resolute stupidity. They must prove they have a pair of killer/redeemer god balls -- which might be termed, Christesticles -- by bombing somebody -- anybody. At present, it appears this fraternity of hubris-blinded killer clowns has Iran in their cross hairs.

The act of imagining enemies serves as distraction from the angst arising from the vast economic inequities of life in the contemporary US. This is the good versus evil, dramatic conventions of the children's theatre of our politics: We boo the villains -- and are instructed to clap our hands to bring about an intervention by supernatural forces ... In this case, in the form of an action hero/magical being to do our killing: a deity -- who is part Tinker Bell, part predator drone.

But our situation is closer to that of the flawed protagonists in Waiting For Godot -- Samuel Becket's brilliant take on the self-deception at work within the alienated hearts of those who believe their suffering will be assuaged by the arrival of a god-like being. The last lines and final stage instructions of the play are emblematic of the Obama presidency:

VLADIMIR: Well? Shall we go?

ESTRAGON: Yes, let's go.

(Stage direction: They do not move.)

Obama and the Democrats do not move. They do not act. They do not govern. They do not serve their constituents.

Although, in reality, they do serve their true constituents ... the corporate elite -- the forces behind the rising level of authoritarian control over the lives of the people of the nation, both of ordinary citizens and the political class. In situations of veiled coercion, where unspoken threats to one's economic security and social standing are the primary motivating factors determining an individual's response to an exploitive system, there is no need to threaten potential dissenters with crude, old school totalitarian methods of repression such as forced deportment to labor and reeducation camps. In the class stratified, debt shackled US work force, where the personal consequences of financial upheaval are devastating, the implicit threat of being cast into the nation's urban gulag archipelago of homelessness coerces most into compliance with the dictates of the corporate oligarchs.

The effects are insidious. In such an environment, there is no call for the Sturm und Drang of mass spectacle, replete with blazing torches and blown banners hoisted by serried ranks of jut jawed, jack-booted ubermensch: corporatism establishes an authoritarian order by way of a series of overt bribes and tacit threats. This social and cultural criteria causes an individual to become cautious. A Triumph of the bland reigns. Obama's bland, non-threatening charm was cultivated in this hybrid, corporate soil.

As is the case with Obama, corporatism demands employees (and Obama is first among us underlings) render themselves fecklessly pleasant. This is the mandatory mode of being demanded of corporate hires -- self-annihilation by habitual amiability. And Barack Obama has perfected the form.

In his memoir, Dreams From My Father, Obama stated that he learned early: Never scare old, white people ... that is a good description of how he has dealt with BP and the banksters, and all the other old white men in their perches of privilege and power.

Obama, as was the case with Bill Clinton, will not challenge the corporate oligarchs. Both he and Clinton are gifted, intelligent men, but are products of their time. They are men of, what was once termed, "modest birth" who -- out necessity to rise past the circumstances of their origins -- studied, internalized, and made allegiance to the corporate structure. Why? Because, in the age of corporate oligarchy, they knew the only way to rise to power would be to serve its interests. In contrast, FDR came from the ruling class; he knew their ways ... wasn't tempted by the rewards and adulation that come with privilege. He was born into it, could never lose its advantages, and it held no novelty for him.

I'm not positing Clinton was simply a shallow narcissist, as was a fashionable invective aimed at his hulking frame and over-sized persona during his tenure as POTUS ... such palaver was so much shadow projection on the part of the vampiric careerists of the Washington-New York nexus of blood-sucking media undead. Rather, Clinton was a big talent. He was Byronic in his expansive nature. And like Byron he could claim, in all honesty, he could love a thousand women (and not only women, but varieties of constituents) in a thousand different ways, all at once. He was a romantic at heart in an age of crackpot realists. He was a large presence in a small-minded time. And this is how his trouble in the 1990s, and ours, in the present time, began.

When the Cold War ended, and the arrogant fantasies of neoliberal capitalism were ascendant, virtuoso of the zeitgeist that Clinton was, his prodigious wings caught those heady updrafts and he took the nation on an Icarian flight of Reaganesque economic deregulation, that would, later, contribute to the spiraling fall -- known, at present, as "the economic downturn."

Clinton could have used some saturnine apprehension regarding the dark side of capitalism, rather than the intoxication gained from the provisional, mutually serving alliances he made with his Wall Street bubble salesmen buddies, Rubin, Summers, and Geithner.

Clinton's periodic, erotic contretemps were not the problem; it was his and his advisor's flights of economic fancy that had real consequences for those of us who live at ground level among the debris and ash resultant from the inevitable fiery crash of their vanity and cupidity.

Enter Obama when the bubble burst. The stage is set for sweeping reform. Instead, we have received faux populist bromides, as all the while, behind the scenes, he has gone about the business of accommodation, capitulation, and general lickspittle boot-buffing of the corporate class.

If you listen closely, you might hear, all the way from the realm of the damned below, Ronald Reagan cackling in glee over it with his lower order demon companions from within their eternal prison of flames.

CREDITS:

-Phil Rockstroh ( "Part Tinker Bell, Part Predator Drone: The Fantasy of the Presidency as Deus ex Machina," CommonDreams.Org, 8.17.2010. Image: -Eugene Lerner, "On the 6th day", 2008 ).

Thursday, December 3, 2009

Obama: The Audacity Of Hopelessness...

With Obama's massive troop escalation (can the Nobel Peace Prize be rescinded?) he's made Afghanistan his war, reminiscent of President Johnson's Vietnam War escalation. At the current death rate of 500 soldiers per year the events depicted in the film will soon become a shattering reality for many more Americans. And next year Obama will spend some $65 billion on Afghanistan, more than for the Iraq war.

Afghanistan, the "Graveyard of Empires," is this administration's most egregious failing and is now fated to define Obama's legacy. Beyond Afghanistian, maintaining permanent military bases and large garrisons in Iraq, allowing Israel to evade a just two state peace with the Palestinians, clandestine Blackwater (now Xe services) assassins roaming around Pakistan, the killing of hundreds of Pakistani civilians by CIA Predator drone attacks authorized by Obama early in his tenure, and a continuing U.S. military build-up in Colombia under the guise of a phony "war on drugs," also are on the list.

A one-year litany of domestic disappointments could be captured by a bumper sticker reading "the audacity of hopelessness." After handing over almost $3 trillion to bankers, we have a jobless "economic recovery," an official 10.2 percent unemployment rate which is actually 16.5 percent, the number of home foreclosures continues to rise and a country in which one in four children only manage to keep hunger pangs at bay because of food stamps and soup kitchens.

In the face of this situation Obama's first stimulus package was pitifully small, and while it did "save" some jobs, it wasn't nearly enough for serious job creation. Obama's professed support for helping workers to unionize evaporated shortly after his inauguration. And under Obama's watch, as noted by New York Times columnist Bob Herbert, "Even as tens of millions of working Americans are struggling to hang onto their jobs and keep a roof over their families' heads, the wise guys of Wall Street are licking their fat-cat chops over yet another round of obscene multibillion dollar bonuses -- this time thanks to the bailout billions that were sent their way by Uncle Sam..."(10/20/09).

The nine largest banks are distributing $32.6 billion in bonuses. But given the jobs crisis and depression-like situation confronting tens of millions of our fellow citizens, Obama found a record-breaking $664 billion for the Pentagon for fiscal 2010. Finally, Obama and many Democrats quickly abandoned government single payer national health insurance -- the only plausible solution to our healthcare crisis -- caving to the despicable, predatory, for-profit private health insurance lobbyists. (Note: These lobbyists gave $1.8 million to 18 key members of Congress).

For those who worked and voted for Obama, especially younger folks, all of this must be a bitter pill to swallow, a giant step backward toward disillusionment and cynicism. I prefer to interpret it as a necessary and valuable lesson in electoral illusions for those truly serious about making this a better country:

Obama, a brilliant and charismatic politician, was always a conservative corporate Democrat, a self-described believer in "the free market," and an enthusiastic accommodator to the rich and powerful. In the words of one pundit, Obama is Clinton without the sleaze. He would never have been given a favorable vetting by the financial elites who chose our presidential candidates if he represented the slightest threat to their domestic interests and global empire. By the way, the latter includes 800 military bases in 130 countries.

According to astute political analyst Paul Street, the Obama campaign set new corporate fundraising efforts, including nearly $1 million from Goldman Sachs. In short, aside from some crafty rhetoric Obama was never a social justice populist and viewing him that way always contained a massive dose of wishful thinking. In that narrow sense, Obama has been entirely consistent and didn't really betray anyone.

More and more Americans are wise to the fact that because Democrats and Republicans are virtually indistinguishable on the issues that matter most, the "change we can believe it" will not be forthcoming from these two business parties.

Short term we need a mobilized and vocal movement from below that dramatically increases the political costs for those resisting needed reforms. Longer term, we need systemic change, change in the class structure of capitalism. Until and unless workers who produce all the goods and services in our society participate in making the major economic policy decisions -- to run the economy democratically -- we will only be tinkering with a system that primarily serves those who own it. We need a new broad-based political party that actually responds to the genuine grievances and aspirations of ordinary working people and youth.

-Gary Olson ( “Obama’s First Nine Months: Change We Can Believe In?,” CommonDreams.Org, 12.3.2009. Image: "Obama Fraud," Image Products, 2009 ).

Tuesday, November 3, 2009

History Repeating: In Goldman Sachs We Cannot Trust...

GOLDMAN SACHS BUSINESS PRINCIPLES ( # 5 of 10)

"We stress creativity and imagination in everything we do. While recognizing that the old way may still be the best way, we constantly strive to find a better solution to a client's problems. We pride ourselves on having pioneered many of the practices and techniques that have become standard in the industry. -Goldman-Sachs Website, 2009.

HISTORY:

Goldman-Sachs is a financial institution that survived the Great Depression. John Kenneth Galbraith in his popular book, The Great Crash 1929 has a chapter dedicated exclusively to them entitled: In Goldman-Sachs We Trust.

Here we see a pattern emerging dating back nearly a century:

1928:

"Goldman, Sachs, and Company (GS&C) created a new venture called "Goldman, Sachs, Trading Company" (GSTC) and originally issued 1M shares at $100/share on Dec 4, 1928 but GS&C bought it all and then sold 90% of it to the public for $104 [apparently thinking this was a way to make a quick buck -- they had not yet learned about the concept of "leverage" as it is used/abused today]. Only 2 months later (Feb 21, 1929) GSTC merged with a company called Financial & Industrial Securities Corp. -- the resulting assets were $235M. Just before the merger, Feb 2 the stock was $136.50 and 5 days later on Feb 7 it was $222.50"
Massive value increase even though tangible real value was much less. Incredible spikes seem to follow the firm. Maybe they have the Midas touch?

“This remarkable premium was not the undiluted result of public enthusiasm for the financial genius of Goldman, Sachs. Goldman, Sachs had considerable enthusiasm for itself, and the Trading Corporation was buying heavily of its own securities. By March 14 it had bought 560,724 shares of its own stock for a total outlay of $57,021,936. This, in turn, had boomed their value. However, perhaps foreseeing the exiguous character of an investment company which had it investments all in its own common stock, the Trading Corporation stopped buying itself in March. Then it resold part of the stock to William Crapo Durant, who re-resold it to the public as opportunity allowed.”

1929:

Seven months later, after the October crash (including a 2:1 stock split), the price of the stock ultimately fell to approximately 1 3/4. The Goldman-Sachs Trading Corporation (GSTC) was an investment trust, a forerunner of the modern mutual fund. According to Galbraith, Goldman-Sachs' stock lost 97% of its going-public value., less than a year after its public offering.

1932:

But in a time with no SEC, virtually anything went on Wall Street during the Great Depression. Of course, we all know how the story ends. Years later in Washington Mr. Sachs had this to say to Senator Couzens at the Committee of United States Senate Hearing:

Senator Couzens: Did Goldman, Sachs and Company organize the Goldman Sachs Trading Company?

Mr. Sachs: Yes, sir.

Senator: And it sold its stock to the public?

Mr. Sachs: A portion of it. The firm invested originally in 10 percent of the issue.

Senator: And the other 90 percent was sold to the public?

Mr. Sachs: Yes, sir.

Senator: At what price?

Mr. Sachs: At 104...the stock was later split two for one.

Senator: And what is the price of the stock now?

Mr. Sachs: Approximately 1 3/4.

Deja-Vu perhaps?

2008:

Goldman Sachs seems to have a pattern of passing the proverbial buck after they have rinsed all profits from their venture and moved out of the way before the train derails.

(Excerpt:"In Goldman Sachs We Trust: The Story of a $222 Stock going to $1 During the Great Depression," mybudget360.com,8.2009. Image: Profiteer Illustration, Library of Congress, 1929).

Wednesday, October 15, 2008

The United Bank of America: A Call To Civil Service...

“Democracy is the road to Socialism.” -Karl Marx

"In what now looks like the final phase of the credit crunch, one thing has become clear: Many of the world's major banks will end up in state control.

Britain is furthest down the track. This week, Royal Bank of Scotland Group Plc and HBOS Plc ceded majority control to the government in exchange for financial support. Already, the state is making demands. It will have the right to seats on the board, to fix dividends, and be allowed to set executive pay.

Other countries are likely to follow. Germany has put its own rescue package in place, and Chancellor Angela Merkel has said the way bankers pay themselves will have to change. Even U.S. Treasury Secretary Henry Paulson has promised the government will take a direct stake in banks such as Citigroup Inc. and Goldman Sachs Group Inc.

In effect, bankers are about to become civil servants. That will require a huge culture change. In a second, banking will have to switch from being a raucous, entrepreneurial and aggressive industry into a dull, safe and conservative one.

For that to happen, their brains will have to be completely rewired. Everything a generation of bankers grew up expecting will be forgotten. A new set of rules is being written.

The initial moves will be cosmetic. Out will go the round- the-clock, work-hard-play-hard culture. In its place will come the nine-to-five day with a break for tea and biscuits. Meetings will be sacrosanct, and the keeping of minutes precise. The gender-awareness officer will no longer be a figure of fun, but rather the most powerful person in the workplace. As for taking clients to lap-dancing clubs, don't even think about it.

It's a new world, get used to it.

-Matthew Lynn (Excerpt: "Bankers Find Their New Calling as Civil Servants," Bloomberg News, 10.15.08. Image: - Deathagony1917,DeviantArt.com,2008).